California Braces for Impact as Federal Health Subsidies Expire

California is bracing for significant shifts in its healthcare landscape as federal health subsidies expire. Thousands of middle-class residents who rely on the state-run insurance marketplace, Covered California, are facing steep premium increases. These changes stem from the end of enhanced federal subsidies initially offered during the COVID-19 pandemic.

The Landscape Post-Subsidy Expiration

Despite projections of increased insurance cancellations, enrollment figures for Covered California have remained stable. Jessica Altman, the executive director of Covered California, expressed concerns that the number of individuals dropping coverage might rise as higher premiums are revealed this month. Updated enrollment data will be available in the spring.

Current Enrollment Trends

As of January 17, 2026, a total of 1,906,033 Californians have enrolled in Covered California. This marks a slight decrease of less than 1% from the 1,921,840 enrollments at the same time last year. Currently, 92% of the enrollees continue to receive some form of government subsidies to assist with their health insurance costs.

• Nearly half of the enrollees qualify for plans costing $10 or less per month.
• Seventeen percent can renew their policies without paying any premiums if they opt to maintain their current plans.

Impact of Expired Subsidies

The expiration of subsidies has left many individuals reconsidering their options. Enhanced subsidies had previously expanded eligibility to higher-income families, removing the previous cap of 400% of the federal poverty level. Currently, individuals earning over $62,600 and families earning over $128,600 do not qualify for these subsidies, resulting in increased financial burdens.

Estimated Premium Increases

The average premium for Covered California plans has surged by over 10.3%, affecting many families. For example, a couple in Los Angeles with a household income of $90,000 will see their monthly premium for the benchmark Silver plan rise from $414 to $699, an increase of 69%. This translates to an additional $3,420 in annual costs.

• Those retiring before age 65 and making above the previous subsidy threshold will experience substantial financial strain.
• Retirees expecting continued assistance might face thousands more in healthcare costs.

State Support Measures

In response to these challenges, California has allocated $190 million in subsidies for individuals earning up to 165% of the federal poverty level. This financial aid aims to stabilize monthly premiums for low-income residents, ensuring consistency with 2025 levels.

Options for Californians

People interested in learning about their coverage possibilities or qualifying for financial assistance can visit CoverCA.com.

Consequences of No Coverage

It’s critical for Californians to consider the implications of forgoing health insurance. Uninsured individuals risk facing medical bills that could reach tens of thousands of dollars if they encounter health issues. Additionally, California law imposes an annual penalty of $900 for each uninsured adult and $450 for each child.

As federal health subsidies expire, California residents must navigate new challenges in healthcare affordability and access, underscoring the importance of understanding their options through Covered California.